Model Cities


Daqing Background:

Geographic Background:

Daqing located in the North Temperate Zone, Daqing belongs to the continental monsoon climate and is affected by the cold air mass from the inland of Mongolia and the monsoon resulted from the warm air mass of the ocean. Generally, the winter is cold with occasional snowfalls, and spring and autumn are prevailed by monsoons. A shorter frost free period and plenty of rainfall comes in step with the heat, all of which are good for crops and herbage. The yearly average temperature is 5.6 degrees Celsius with a summer average of 22 degrees Celsius, and 2658.1 hours of sunshine, 229 days free of frost in average. The daily difference in temperature can be up to 14 degrees Celsius during the growth period of crops.

Economic Background

Daqing's economy highly depends on petroleum and related industries. Daqing's oilfield is China's largest oilfield, and the world's fourth most productive oil field. Petroleum accounts for 60.8% of GDP. In 2008 Gross Domestic Product was RMB 222 billion yuan, while GDP Per capita RMB 80,092 (US$11,532), so Daqing is ranked eighth by GDP per capita among 659 Chinese cities.

Daqing Service Outsourcing Industry Development


The 11th Five-year Plan period will be the key time for Daqing to develop service outsourcing. The principle of Daqing to develop service outsourcing is to exploit its comparative advantages and highlight its petroleum characteristics on the basis of its actual situation. Daqing will try to build itself into a service outsourcing base characterized by petroleum engineering technological service, software development and information processing service, with well-developed infrastructure and industry clusters as well as a beautiful environment. By 2010,

1. Daqing will have reaped RMB 5 billion revenues from service outsourcing.

2. Daqing will have had 150 service outsourcing companies, with over 30% of them gaining over RMB 10 million revenues from service outsourcing.

3. The total employment of its service outsourcing industry will have reached 20 thousand people.

By 2015, service outsourcing companies will have reached 300, with RMB 15 billion revenues.

Political Support:

Daqing has been listed by the State as an oil-based city and a pilot city for economic transition. Heilongjiang province has designated Daqing as the center of the Hadaqi Industrial Corridor. CNPC is going to build Daqing into China's largest polyolefin production base, world-level propylene derivatives and oilfield chemicals bases and China's petroleum chemical equipment manufacturing and technology base. In the context of national revitalization of the northeast industry, all this will provide incentives to sustainable development of Daqing. Daqing has formulated a number of documents to improve its legal environment, standardize administration, enhance protection of IPR so as to build an enabling environment for investment in service outsourcing.

To support the development of service outsourcing, to improve the business and financial service environment, Daqing government has Issued a number of outlines such as Opinions on Accelerating Development of Service Outsourcing and Provisional Measures to Promote Development of Service Outsourcing to specify preferential policies for service outsourcing growth. The companies based in the Daqing Service Outsourcing Industry Park will enjoy special preferential policies apart from the incentives granted by the State or the province to revitalize the northeast economy, facilitate economic transition of resource-based cities, encourage development of national hi-tech technology industry park and promote development of Hadaqi Industrial Corridor.

In accordance with Provisional Measures to Promote Development of Service Outsourcing (passed by the 3rd session of the 8th government congress on April 18, 2007), Daqing will provide the service outsourcing companies with the following incentives: housing rent exemption, subsidies for communications, certification and labor training, preferential loans and settlement of employees.

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